The Domestic AI Advantage: How the National Identity of Generative AI Shapes Consumer Adoption of AI ‐Generated Content

Generative artificial intelligence (GenAI) systems, such as ChatGPT and DeepSeek, have become integral to content creation, yet little is known about how consumers perceive and adopt content generated by GenAI with different national identities. This research investigates the role of GenAI's national identity (domestic vs. foreign) in shaping consumer adoption of AI‐generated content. Four studies show that consumers are more likely to adopt content generated by domestic GenAI when it pertains to their own country (i.e., domestic content), while showing no preference difference between domestic and foreign GenAI for content related to foreign countries (i.e., foreign content). This phenomenon, termed the domestic AI advantage, stems from consumers' lay belief that domestic GenAI is more capable of handling domestic issues. Notably, this advantage of domestic GenAI (vs. foreign GenAI) can be mitigated when the foreign GenAI makes effort to be localized. This study contributes to the understanding of consumers' psychological and behavioral responses to GenAI, offering valuable insights for companies aiming to promote GenAI in either domestic or global markets.